Rebuild cost and title insurance amount.

[quote=1950home;1022365]Thanks for the info creeper. I could see how that could work, but that would not work 100% of the time in today’s market or when buying a fixer upper house like I did.

Purchase price on my house was $50,000.
Budget to fix up house $25,000 to $30,000.
Land assessment $17,800. info from GIS
Improvements $78,500. info from GIS
Tax assessment $96,300. info from GIS[/quote

It works because title insurance is a one time expense unlike homeowners insurance that you have an annual fee.

Simply put, it guarantees you a free and clear title. You probably paid less than 1k for it based on what you paid for the property

Rebuild cost and title insurance amount.

I under stand how homeowners and title insurance works and how they charge you for it. But I’m unclear on how to value my house. I thought that others would have been though this before.

I also understand that if I only insures on my house for $132,000. If I have a claim and they value my house at $150,000 they can decide I'm self insurance on the $18,000 (13.63%). At that point they would could only pay 86.37% of the repair leaving me to pay my deductible + 13.63% of the bill.

Quote:

Originally Posted by creeper

It works because title insurance is a one time expense unlike homeowners insurance that you have an annual fee.

Simply put, it guarantees you a free and clear title. You probably paid less than 1k for it based on what you paid for the property

My understanding on title insurance is that it should be 110%+ of the retail value. They take out there fees, then the lawyer fees, and you get the left overs that might cover the cost of the property. The insurance amount should be changed every few years.

Rebuild cost and title insurance amount.

Confusion is setting in.

Homeowners insurance premiums increase over time. Title insurance is a one time payment transaction. Has something changed that may affect you such as a neighbours fence or deck encroaching on your land.

Expropriation?? Maybe a hidden defect in the chain of title?

Other than that any repair goes through your homeowners

As far as appraising your property value, there are a few factors to add or subtract from the purchase price. Reno's or wear and tear. Time. Highest and best use of the neighbourhood.

Rebuild cost and title insurance amount.

Call your insurance provider and find out how they come up with the cost to rebuild your property. Then do some research on your own.

Talk to some local builders in your area and get an idea what it would cost to build a home of similar size and finishing as yours. I would even get a real estate estimate as well. You may even want to pay for an appraisal of the property.

In my case, I contacted my insurance company after our renovations were completed and we increased the insurance coverage based on a discussion of the improvements and costs. I was willing to provide them with photos, but they didn't require them as the replacement value was within reason.

I do think you are on the right track to ask the questions now instead of after a tragic event like a fire etc.